VAT Margin Schemes

The VAT Margin Scheme operates a reduced rate of 16.67% that applies to the NET difference between the purchase and sales of your goods. This differs from standard VAT reporting that applies to the difference between your input and output tax.

You can choose to use the margin scheme when you sell:

second-hand goods

works of art

antiques

collectors items

You will not be able to use the margin scheme for:

any item you bought for which you were charged VAT

precious metals

investment gold

precious stones

How can I register for a VAT Margin Scheme?

There is no formal registration process, you can start using a margin scheme at any time by retaining the correct records, and then reporting this on your VAT return.